Saturday, September 10, 2011

What The Studies Show About Vacation Rentals

Some opponents of family vacation rentals focus only on negative impacts, but studies show that Vacation rentals make significant contributions to the communities that host them.

From “Transient Vacation Rentals on Oahu”, in 2005:
  • “for every $1 of spending by visitors on TVRs an additional 79 cents of spending will be generated elsewhere in the local economy for a total of $1.79 generated.”
  • “(every) $1 of TVR spending leads to $0.49 in income (to area businesses)”
  • “18.8 jobs were supported in 2004 for every $1 million of TVR spending.”
  • “8.3% of … visitors chose this form of alternative lodging.” 

From the 2009 North Carolina study, “Measuring  the Economic Impact of the Vacation Rental Industry on State and Local Economies”:
  • “The economic impact of vacation rental is far greater than the industry’s share of tourism dollars/taxes: unlike hotels and motels, the industry often plays a prominent role in resort economies by driving local construction, real estate, finance and insurance industries.“
  • “Vacation rentals are subsidized by homeowners.  This can facilitate tourism growth and enhance tax revenues in resort areas where large hotels are not economically sustainable. Vacation rentals are often the lodging infrastructure that develops an area’s tourism. “
  • “(The) true economic contribution spills beyond its tourism revenues to its role as a real estate investment that draws out-of-state money to local real estate, construction, finance and insurance industries. “ 
  • “Properly understood, and nurtured, (vacation rentals) can be harnessed to expand state and local economies.“
  • “Vacation rentals tend to be targets for travelers’ “longest pleasure trip” of the year. They attract an average travel party size of 6 or more.“
  • “Travel-generated payroll is … income paid to employees directly serving the traveler within the vacation rental industry, (and the) public transportation, auto transportation, foodservice, retail, and entertainment and recreation sectors.“
  • “A wide variety of multi-level jobs are supported by travel and tourism. These include executive and managerial positions, as well as service oriented occupations.“
  • “Travel generated tax revenue is a significant economic benefit, as governments use these funds to support the travel infrastructure and a variety of public programs.“ 

Also from the same study:
  • "... debates over community growth seldom include (a) statistical analysis of how ... restriction(s) on vacation rentals will affect a resort’s construction, real estate, finance and insurance industries, or the related tax revenues.
  • A better understanding of the vacation rental industry will help community planners accelerate or control economic growth. It will also assist them in developing policy on topics that can be divisive within the ... community."

We couldn’t have said it better ourselves.  

The Studies:

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